Crime Today News
The Indian automobile industry exhibited varied performance across segments in April 2025, with commercial vehicles experiencing a slight decline, passenger vehicles posting modest gains, and two-wheelers facing production challenges despite stable consumer demand.
Commercial vehicle wholesale volumes fell 1.4 percent year-on-year in April 2025, while retail volumes contracted 1.0 percent. The segment was affected by seasonal factors and inventory liquidation at dealership levels. ICRA, the rating agency, expects the commercial vehicle industry to register 3-5 percent growth in fiscal year 2026, supported by resumed construction and infrastructure activities.
Within the commercial vehicle segment, light commercial vehicles declined 1.1 percent in retail sales year-on-year and 10.7 percent sequentially, reflecting muted demand. Medium and heavy commercial vehicles showed resilience with retail volumes declining just 0.2 percent year-on-year while reporting a 7.3 percent sequential increase.
The passenger vehicle sector demonstrated better performance with wholesale volumes improving to 350,000 units and retail sales growing 1.6 percent in April 2025. Original equipment manufacturers maintained steady production with a modest 4 percent year-on-year growth. However, inventory levels remained elevated at around 50 days by month-end, according to the Federation of Automobile Dealers Association.
Sport utility vehicles continued their dominance in the passenger vehicle segment, accounting for 64-65 percent of overall volumes. Export volumes in this segment showed healthy improvement of 20 percent, though from a smaller base, with Maruti Suzuki leading exports followed by Hyundai.
The two-wheeler industry faced significant production adjustments, with wholesale volumes declining 18.8 percent year-on-year to 1.39 million units in April 2025. This decline was attributed to production shutdowns undertaken by manufacturers for supply chain alignment and scheduled maintenance. However, retail volumes remained stable with around 2 percent year-on-year growth, supported by festive season demand.
Electric two-wheeler penetration remained in the 5-6 percent range on a monthly basis. After reaching 130,274 units in March 2025 with 71 percent sequential growth, electric two-wheeler volumes moderated to approximately 91,800 units in April 2025.
The Indian automobile industry has been navigating multiple challenges including high inventory levels, changing consumer preferences, and supply chain adjustments. The commercial vehicle segment, which serves as an indicator of economic activity, had been impacted by general elections and their effect on infrastructure projects in the first half of fiscal 2025.
ICRA forecasts indicate cautious optimism for fiscal 2026, with passenger vehicles expected to grow 4-7 percent, commercial vehicles 3-5 percent, and two-wheelers 6-9 percent. The growth expectations are based on anticipated demand revival driven by higher disposable incomes from income tax structure changes, steady replacement demand, and expected recovery in urban demand supported by healthy rural incomes.
The rating agency noted that production and wholesale volumes might be impacted by elevated inventory levels at dealerships, particularly in the passenger vehicle segment. Export growth continues across segments, though constraints exist due to foreign exchange shortages and inflationary pressures in certain African markets, particularly Nigeria.
The industry outlook remains dependent on sustaining demand momentum post-wedding season, managing inventory levels effectively, and maintaining the economic recovery trajectory that began in the latter months of fiscal 2025.
This article first appeared on Autocar
📰 Crime Today News is proudly sponsored by DRYFRUIT & CO – A Brand by eFabby Global LLC
Design & Developed by Yes Mom Hosting
